\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 248 Shaanxi Construction Engineering Group Corporation Limited(600248) )
The revenue increased steadily, and there were many impairment provisions, which affected the performance
The company released the annual report for 21 years and the first quarterly report for 22 years. 21fy achieved a revenue of 159478 billion, a year-on-year increase of + 24.86%, a net profit attributable to the parent of 3.477 billion, a year-on-year increase of + 22.88%, a revenue of 33.5 billion, a year-on-year increase of + 10.14%, and a net profit attributable to the parent of 770 million, a year-on-year increase of + 4.12%. The growth rate of performance in the 21st year was lower than expected, mainly due to the year-on-year increase of 800 million in the single provision of accounts receivable. The company plans to achieve revenue of 185 billion yuan in 22 years, a year-on-year increase of + 16%, and contract signing amount of 365.4 billion yuan (2.0 times of revenue), a year-on-year increase of + 16%. As the company’s orders continue to be full and we expect the impact of impairment losses in 22 years to decline year-on-year, the performance of 22 years may return to normal.
The main business of EPC project is stable, and the increase of gross profit margin shows the control ability of the whole process
21fy’s engineering contracting / Petrochemical / other businesses realized revenue of 147009/91.772738 billion respectively, with a year-on-year increase of + 24.4% / 21.9% / 86.8% respectively, and new orders of 314281 billion in 21 years, with a year-on-year increase of + 14.32%; Among them, the internal / external / overseas of Shaanxi Province were 231603/73.145/9.533 billion respectively, with a year-on-year increase of + 14.73% / 12.97% / 14.94%. Both the main business and the newly signed contract amount maintained steady growth. The gross profit margin of engineering contracting / Petrochemical / other business was 8.64% / 6.92% / 11.32% respectively, with a year-on-year increase of + 1.09 / -0.91 / -3.16pct. It is speculated that it is related to the company’s strengthened ability to control the whole process and excellent ability to control procurement and construction costs. From the perspective of the total amount of projects under construction, the proportion of housing construction / infrastructure construction of the company in 21 years is 72% / 12%. Year on year + 0.5 / – 4pct, infrastructure projects decreased slightly.
The proportion of impairment loss increased more, and the cash flow is expected to improve
21fy’s gross profit margin was 8.72%, year-on-year + 0.90pct, sales / management / R & D / financial expense ratio was 0.08% / 1.82% / 0.53% / 0.57%, year-on-year change was + 0.01 / – 0.20 / + 0.07 / + 0.07pct, asset and credit impairment loss was 4.41 billion, accounting for 2.77% of revenue, year-on-year + 0.80pct, net profit rate under comprehensive impact was 2.27%, year-on-year -0.05pct. The net CFO of 21 years was -3.060 billion, with a year-on-year increase of -391 million. It is speculated that it is related to the rapid improvement of the company’s business and the increase in procurement costs caused by the rise in the price of bulk commodities, with a cash to cash ratio of 77.31%, a year-on-year increase of + 2.66pct, a cash to cash ratio of 79.28% and a year-on-year increase of + 3.69pct; The debt ratio was 89.90%, with a year-on-year increase of -0.60pct, mainly due to the initial non-public offering of 2.13 billion and the debt swap business with a total scale of no more than 3.5 billion carried out by six subsidiaries in the mode of capital increase, share expansion and debt repayment.
Under the background of steady growth, the company’s business developed steadily and maintained the “buy” rating
We are optimistic about the steady development of the company’s traditional business under the background of steady growth. Considering the impact of impairment loss on the company, we expect the net profit attributable to the parent company in 22-24 years to be 54.79/63.27/7.191 billion respectively (the value was 6.01/6.92 billion before 22-23 years), corresponding to 3.55/3.07/2.70 times of PE in 22-24 years, referring to the 22-year average PE of comparable companies 15x, considering the stable growth of the company’s construction business in the future and the rapid growth of net profit, the company is recognized as pe6x for 22 years, corresponding to the target price of 8.91 yuan, maintaining the “buy” rating.
Risk warning: the investment in housing, transportation and other construction is less than expected, the market expansion is less than expected, and the risk of bad debt and impairment provision is higher.
